Federal Register / Vol. 63, No. 131 /Thursday, July 9, 1998 / Notices 37159

7 Id.

8See Securities Exchange Act Release No. 39519,

n.4 above.

9 15 U.S.C. 78s(b)(2).

10 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 40016 (May

20, 1998), 63 FR 29276 (May 28, 1998).

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. § 552, will be

available for inspection and copying at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the Exchange. All

submissions should refer to File No.

SR–CHX–98–17 and should be

submitted by July 30, 1998.

IV. Commission Findings and Order

Granting Accelerated Approval of the

Proposed Rule Change

After careful review, the Commission

finds that the proposed rule change is

consistent with the Act and the rules

and regulations under the Act

applicable to a national securities

exchange. In particular, the proposal is

consistent with Section 6(b)(5) of the

Act 7 in that it is designed to prevent

fraudulent and manipulative acts and

practices, to promote just and equitable

principles of trade, and to remove

impediments to and perfect the

mechanism of a free and open market.

The Commission believes that allowing

floor brokers or market makers to clear

the post for cabinet securities while

remaining at their respective posts will

ensure that these floor brokers or market

makers will be at their posts when they

need to respond to orders in more liquid

securities at a much faster pace.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of the proposal

in the Federal Register because the

extension will permit the current pilot

to continue without interruption while

the Commission considers the

Exchange’s proposal to expand the

policy on a permanent basis to all

securities traded on the Exchange. The

extension is only for five months (or

until the Commission approves SR–

CHX–98–13, if it decides to do so,

whichever occurs first), and will merely

preserve the status quo. Moreover, the

original pilot was noticed for the full 21-

day comment period and the

Commission received no comments on

the proposal.8 The Commission’s

approval of the proposal to extend the

pilot for five months has no bearing on,

and should not be interpreted to suggest

that the Commission ultimately will

approve SR–CHX–98–13.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,9 that the

proposed rule change (File No. SR–

CHX–98–17) be, and hereby is,

approved on an accelerated basis

through December 6, 1998, or until the

Commission approves SR–CHX–98–13,

whichever occurs first.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–18149 Filed 7–8–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40152; File No. SR–CHX–

98–14]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of a Proposed Rule Change by the

Chicago Stock Exchange, Inc. Relating

to Exempt Credit by Market Makers

July 1, 1998.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 10,

1998, the Chicago Stock Exchange, Inc.

(‘‘CHX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I, II,

and III below, which Items have been

prepared by the Exchange. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to clarify an

interpretation to Article XXXIV, Rule 16

of CHX’s Rules relating to registered

market makers’ utilization of exempt

credit.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

CHX included statements concerning

the purpose of, and basis for, the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item IV below. The Exchange has

prepared summaries, set forth in

sections A, B, and C below, of the most

significant aspects of such statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The purpose of the proposed rule

change is to clarify an interpretation to

the Exchange’s rules regarding market

makers and exempt credit. The

Exchange recently modified

Interpretation .01 to Article XXXIV,

Rule 16, to eliminate a reference to

‘‘creating or increasing a position,’’

thereby including all transactions

consummated on the Exchange or sent

from the Exchange floor via ITS in

determining a market makers’ ability to

use exempt credit.3

In making such a change to the

interpretation, the Exchange did not

intend to eliminate the requirement that

volume be measured on an issue by

issue basis. To eliminate any possibility

that the change may be misinterpreted

in that manner, the Exchange is

clarifying the language of the

interpretation to make it clear that

volume is measured for a particular

issue to determine a market makers’

ability to use exempt credit for that

issue. The text of the proposed rule

change is as follows:

Additions are italicized.

ARTICLE XXXIV

Registered Market Makers—Equity

Floor

Regulatory Status

RULE 16. No text change.

* * *Interpretations and Policies:

.01 Utilization of Exempt Credit.

Exchange Members registered as equity

market makers are members registered

as specialists for purposes of the

Securities Exchange Act of 1934 and as

such are entitled to obtain exempt credit

for financing their market maker

transactions. Members and/or

prospective members who are

anticipating becoming registered as

equity market makers as well as those

clearing firms who are or will be

carrying the accounts of market makers

should be aware of the following

interpretation relative to the use of such

credit:

1. Only those transactions initiated on

the Exchange Floor qualify as market

maker transactions. This restriction

prohibits the use of exempt credit where

market maker orders are routed to the

Floor from locations off the Floor.
37160 Federal Register / Vol. 63, No. 131 /Thursday, July 9, 1998 / Notices

4 15 U.S.C. 78f(b)(5).

5 15 U.S.C. 78s(b)(3)(A).

6 17 CFR 240.19b–4(e).

7 In reviewing the proposal, the Commission

considered its impact on efficiency, competition

and capital formation. 15 U.S.C. 78f(b). 8 17 CFR 200.30–3(a)(12).

2. Fifty percent (50%) of the quarterly

share volume in an issue in a market

maker account must result from

transactions which are either

consummated on the Exchange or sent

from the Exchange Floor for execution

in another market via ITS in order for

the market maker to be entitled to

exempt credit for such issue.

3. Only those positions which have

been established as a direct result of

bonafide equity market maker activity

qualify for exempt credit treatment. This

restriction precludes exempt credit

financing based on an equity market

maker registration for positions

resulting from options exercises and

assignments.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b)(5) of the

Act 4 in that it is designed to promote

just and equitable principles of trade, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition.

(c) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing rule change

constitutes a stated policy, practice or

interpretation with respect to the

meaning, administration, or

enforcement of an existing rule of the

Exchange it has become effective

pursuant to Section 19(b)(3)(A) of the

Act 5 and Rule 19b–4(e)(1) 6 thereunder.7

At any time within 60 days of the filing

of such rule change, the Commission

may summarily abrogate such rule

change if it appears to the Commission

that such action is necessary or

appropriate in the public interest, for

the protection of investors, or otherwise

in furtherance of the purposes of the

Act.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submissions, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. § 552, will be

available for inspection and copying at

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the CHX. All submissions

should refer to File No. SR–CHX–98–14

and should be submitted by July 30,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–18150 Filed 7–8–98; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Information Collection Activities:

Proposed Collection Requests and

Comment Requests

This notice lists information

collection packages that will require

submission to the Office of Management

and Budget (OMB), as well as

information collection packages

submitted to OMB for clearance, in

compliance with Public Law 104–13

effective October 1, 1995, The

Paperwork Reduction Act of 1995.

I. The information collection(s) listed

below require(s) extension(s) of the

current OMB approval(s) or are

proposed new collection(s):

Reporting Events—SSI—0960–0128.

The information collected on Form

SSA–8150–EV is used by the Social

Security Administration (SSA) to

determine eligibility for Supplemental

Security Income (SSI) payments and to

determine correct payment amounts.

The respondents are SSI applicants and

recipients.

Number of Respondents: 33,200.

Frequency of Response: 1.

Average Burden Per Response: 5

minutes.

Estimated Average Burden: 2,767

hours.

Written comments and

recommendations regarding the

information collection(s) should be sent

within 60 days from the date of this

publication, directly to the SSA Reports

Clearance Officer at the following

address: Social Security Administration,

DCFAM, Attn: Frederick W.

Brickenkamp, 6401 Security Blvd., 1–

A–21 Operations Bldg., Baltimore, MD

21235.

In addition to your comments on the

accuracy of the agency’s burden

estimate, we are soliciting comments on

the need for the information; its

practical utility; ways to enhance its

quality, utility and clarity; and on ways

to minimize burden on respondents,

including the use of automated

collection techniques or other forms of

information technology.

II. The information collection(s) listed

below have been submitted to OMB:

1. Representative Payee Report—

0960–0068. Forms SSA–6230 and SSA–

623 are used by SSA to determine the

continuing suitability of an individual/

organization to serve as representative

payee. Form SSA–6230 is sent to

parents, stepparents and grandparents

with custody of minor children

receiving Social Security benefits. Form

SSA–623 is sent to all other payees with

or without custody of the beneficiary.

The respondents are individuals and

organizations who serve as

representative payees for SSI and Social

Security beneficiaries.